Tesla is offering steep discounts on its Model Y SUV as it tries to clear out inventory
Tesla delivered about 386,800 cars in Q1, far fewer than analysts expected. It was its first year-over-year drop in quarterly deliveries since 2020.
Tim Levin/Insider
- Tesla is offering big discounts on its Model Y SUV.
- Elon Musk's EV maker is marking down Model Y prices by $7,500 in some cases.
- In Q1, the company produced more than 46,000 more cars than it delivered.
Tesla is cutting the prices of its Model Y as it faces a broader sales problem.
Elon Musk's electric carmaker is marking down prices of the SUV by upwards of $7,500 in some cases as it tries to clear out inventory.
Tesla's website shows discount amounts varying across the different versions of the SUV and across individual vehicles of any one version.
Here's a sampling of some price markdowns: Some Model Y Performance All-Wheel Drive vehicles are now priced at $49,040, down from $54,490. Some price cuts put Model Y Long Range All-Wheel Drive cars at $44,990, down from $49,990. Some Model Y Rear-Wheel Drive SUVs now show a $39,470 price tag, down from $46,990.
Tesla's latest quarterly report, meanwhile, doesn't look promising.
In Q1, the company produced 433,371 vehicles but delivered just 386,810. The deliveries were far fewer than Wall Street analysts expected, representing a drop of about 20% from the prior quarter and 8% from the same time last year.
It's also the first time since 2020 that Tesla has seen a year-over-year drop in quarterly deliveries.
In a press release Tuesday, Tesla attributed the drop in delivery volume to its production ramp for its updated Model 3, an arson attack at its Berlin Gigafactory, and supply chain issues from the Red Sea conflict. Softening demand may also be a problem for Tesla, as it is for many other EV makers.
Tesla shares were down more than 5% following its quarterly report and have fallen about 30% over the past year.